Correlation Between Apple and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Apple and Bragg Gaming at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Apple and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc CDR and Bragg Gaming Group, you can compare the effects of market volatilities on Apple and Bragg Gaming and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Apple with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Bragg Gaming.
Diversification Opportunities for Apple and Bragg Gaming
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Bragg is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group and Apple is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Apple Inc CDR are associated (or correlated) with Bragg Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bragg Gaming Group has no effect on the direction of Apple i.e., Apple and Bragg Gaming go up and down completely randomly.
Pair Corralation between Apple and Bragg Gaming
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.41 times more return on investment than Bragg Gaming. However, Apple Inc CDR is 2.44 times less risky than Bragg Gaming. It trades about 0.06 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.02 per unit of risk. If you would invest 2,767 in Apple Inc CDR on November 8, 2024 and sell it today you would earn a total of 627.00 from holding Apple Inc CDR or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. Bragg Gaming Group
Performance |
| Timeline |
| Apple Inc CDR |
| Bragg Gaming Group |
Apple and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Bragg Gaming
The main advantage of trading using opposite Apple and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Bragg Gaming can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bragg Gaming will offset losses from the drop in Bragg Gaming's long position.| Apple vs. Northstar Clean Technologies | Apple vs. Gamehost | Apple vs. Exco Technologies Limited | Apple vs. Broadcom |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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